HVS Presents the 2009 Hotel Valuation Index (HVI)
An overview of historical movements and forecasts of anticipated trends for the U.S. hospitality industry
Steve Rushmore, president and founder of HVS, the leading global hospitality consulting and hotel appraisal firm, has announced the publication of the 2009 Hotel Valuation Index. The 2009 publication of the HVI marks an unprecedented time for hotel values. As markets fluctuated wildly throughout the past year and major banking institutions folded, hotel demand dropped dramatically, and average rates soon followed suit.
Steve Rushmore, president and founder of HVS, the leading global hospitality consulting and hotel appraisal firm, has announced the publication of the 2009 Hotel Valuation Index. The 2009 publication of the HVI marks an unprecedented time for hotel values. As markets fluctuated wildly throughout the past year and major banking institutions folded, hotel demand dropped dramatically, and average rates soon followed suit. The availability of credit virtually evaporated, and equity stakes dwindled. Hotel values have subsequently decreased significantly in most major markets.
The Hotel Valuation Index (HVI) tracks hotel values in 65 major markets and the United States as a whole. Created in 1987 by HVS, the HVI is derived from an income capitalization approach, utilizing market area data provided by Smith Travel Research (STR) and historical operational information from HVS’s extensive global experience in hotel feasibility studies and valuations. The HVI for 2009 is based on 2008 data; we note that each market has been evaluated and forecast based on prevailing and anticipated trends specific to that market.
The dizzying pace of declining hotel values has left industry participants in limbo. When will the downward spiral end? When will markets recover, and by how much? How do we even value hotels in today’s uncertain times? Are the good times of recent years past gone for good?
Co-authored by Emily U. Smith, Neel M. Lund, and Steve Rushmore, the 2009 HVI provides a review of historical movements and forecasts of anticipated trends for the U.S. hospitality industry. We first revisit the fateful consequences of the crumbling banking system upon the U.S. economy, and government attempts to plug the leak. We then analyze the impact of the recession upon lodging demand and compare these trends to prior periods of recession. Next, we look at how to value hotels in today’s credit-dry environment. We then present the 2009 HVI, with historical values, forecasts, and discussions on notable markets.
Since 1980, HVS has provided financial and valuation consulting services for more than 10,000 hotels in all 50 states and more than 60 countries. Our professional staff of more than 150 industry specialists offers a wide range of services, including market feasibility studies, valuations, strategic analyses, development planning, and litigation support. Through our divisions and alliances, HVS supplies additional hotel consulting expertise. HVS databases contain comprehensive information on more than 30,000 hotel transactions, operating agreements, financial statements, and compensation information.
To obtain a free copy of the 2009 Hotel Valuation Index, contact Joan Raffetto at 516-248-8828, ext. 231, or email